News and Events

At its regular meeting on February 7, 2012, the Board of Directors for Itasca Economic Development Corporation (IEDC) accepted the resignation of Joe Broking, President & CEO, and voted unanimously to name Jeff Borling as Interim President & CEO.

Joe Broking informed the Board of Directors and IEDC Investment Partners of his plans to resign his position on February 1, 2012, after accepting a new role as Chief Financial Officer for Magnetation Inc., headquartered in Grand Rapids, MN. Broking’s last day at IEDC will be March 1, 2012. An Executive Search Committee has been formed and the IEDC Board of Directors anticipates hiring a permanent replacement in Q2 2012.

During the past 18 months, Broking has served as an invaluable asset for IEDC, leading several new business expansion and attraction initiatives on behalf of the organization and its partners from throughout the region. Highlights have included new agreements with future tenants of the Itasca Eco Industrial Park and the Itasca Technology Exchange, as well as several successful consulting projects aimed at helping local businesses increase revenues and expand their employment base in Itasca County.

“It has been an honor to work for this organization and all of the great public offices, foundations and businesses in the Itasca County area,” Broking stated. “This decision was not an easy one, but I am confident in the leadership of Jeff Borling and the IEDC Board of Directors and I look forward to continuing my strong support for the regional economy in my new capacity at Magnetation.”

Jeff Borling has served as Director of Itasca Business Development for APEX and IEDC since February, 2010 and has led countless initiatives on behalf of the two organizations under a collaborative agreement. Borling will assume the President & CEO role on an interim basis beginning March 2nd and will lend the necessary leadership and support to guide IEDC through this brief period of management transition.

Itasca Economic Development Corporation (IEDC) is a 501(c)(3) non-profit formed in 1981, with a mission of helping create quality jobs. Support for IEDC comes from the Blandin Foundation, Itasca County and several local units of government, as well as from many individuals and private businesses.

If you would like more information about the President & CEO position at IEDC, or if you would like to submit your resume for consideration, please contact Teri Heikkila: (218) 326-9411 x.20

On Thursday, January 26, 2012, Jeff Borling represented the region at the 2012 Minnesota Green Chemistry Conference, delivering a presentation highlighting the many opportunities available in northeast Minnesota and northwest Wisconsin for chemical and fuel companies utilizing renewable wood resources to produce value-added goods. Borling noted the closure of the three Ainsworth wallboard factories in northern Minnesota as a clear opportunity for these growing companies, both in the advantage of leveraging existing assets at the plant sites themselves, and in the advantage of recapturing the un- or under-utilized timber resources no longer being harvested for these production facilities. 

An overview of the progress made by APEX and the Itasca Economic Development Corporation (IEDC) in redeveloping one of these plants as the Itasca Eco Industrial Park was also provided, with high-level information regarding the integrated development concept IEDC and APEX are leveraging to promote the growth of synergistic wood products companies at this location. As talks progress with a potential anchor tenant at the site, this site could offer significant competitive advantages to co-located companies seeking to produce green chemicals and other value-added goods from wood, or from the byproducts generated by the anchor tenant. 

Aditional speakers at the conference included representatives from Dow Chemical Company, SC Johnson, Ecolab, Segetis, Reluceo, the Minnesota Dept. of Employment & Economic Development (DEED), and the BioBusiness Alliance of Minnesota, among others.  These and many other well known companies are in the process of developing and/or bringing to market exciting new products that could very well be made from wood feedstocks in the near future. 

These products include plastics, reinforced composites, pigments and inks, paint additives, adhesives - even compostable baby diapers - all of which would be a welcome addition in helping to diversify the forest products industries of Minnesota and Wisconsin and all of which would be welcome additions as manufacturing processes housed at the Itasca Eco Industrial Park.

To learn more about Minnesota's Green Chemistry activities or the opportunities available for your business at the Itasca Eco Industrial Park, please contact Jeff Borling: 218-326-9411 x.23

On January 24, 2012, members of the APEX staff and leadership attended the 2012 Legislative Priorities dinner hosted by the Minnesota State Chamber of Commerce. As in year's past, this high profile event attracted a sellout crowd of over 1,500 business leaders, elected officials, association representatives and local chambers of commerce. APEX attended as guests of the Grand Rapids Area Chamber of Commerce.

In addition to an overview of the State Chamber's policy agenda on key business issues, the program featured a keynote address from Governor Mark Dayton, who presented his Administration's priorities for the upcoming year.  Other members of the legislative leadership provided their views on the top priorities for the upcoming session, with comments regarding the need to continue efforts to streamline the permitting process and a shared desire to put together a deal to build a new stadium for the Vikings.

For a complete overview of the Minnesota State Chamber's key priorities for 2012, please visit:

http://www.mnchamber.com/priorities/

On January 19, 2012, APEX hosted a reception at the Kitchi Gammi Club for several regional businesses interested in learning more about APEX and the benefits of membership.  Rob West, APEX President & CEO, outlined the organization's mission, vision and key objectives in northeast Minnesota and northwest Wisconsin, making the business case for becoming an APEX member.  Representatives from seven businesses in a diverse set of industries attended the reception, along with several members of the APEX Executive Committee and staff. 

One of these companies was Island Investment, Inc., which manages and develops many properties throughout the region, including the Canal Park Lodge in Duluth, the Holiday Inn Express in Mt. Iron, and Canal Park Brewing Company, currently being built on the lake front in Canal Park.  Talks have continued with Company representatives since January and Island Investment is planning to join APEX in the near future.

We look forward to welcoming Island Investment, Inc. and others to join our list of new members for 2012, which includes Involta, Citon Computer Corporation, C.W. Technologies, Granite Equity Partners, and Itasca Economic Development Corporation.  We thank these and all our members for supporting our efforts to help create jobs and increase investment activity in our region.

If you would like more information about an APEX membership for your business, please contact Sandy Johnson: (218) 740-3667

Over the past several weeks, Per Carlsson, owner of ABioNova, a Swedish biomass boiler manufacturer, has been on site at the Wolf Ridge Environmental Learning Station in Finland, Minnesota, overseeing the installation of his BioMax Commercial Boiler system, which were introduced into the U.S. market in early 2010. APEX has worked together with the BioBusiness Alliance of Minnesota to assist ABioNova in all aspects of its U.S. expansion strategy, from identifying potential customers and market opportunities to establishing contract agreements with local companies capable of providing manufacturing support, sales and distribution strategies, installation and service agreements, and more. 

In partnership with Italian designer D’Alessandro Thermomeccanica Company of Miglianico, Italy, ABioNova has developed a biomass boiler system that ranges in size from 440,000 to 6,800,000 btu/hour output capacity.  These unique systems use the latest in computer-controlled technology to maintain the highest possible efficiency, no matter what type of biomass fuel is burned - woodchips, wood pellets, etc. To bring these systems to the U.S. market, ABioNova brought on WoodMaster out of Red Lake Falls, MN as its sales and distribution partner and set up a contract with Superior Steel in the Twin Ports to provide manufacturing support.

Although the team has already installed several boilers in the northeastern U.S., the installation in Finland, Minnesota represents the first project in the APEX service territory. This installation involved two boilers, which allows for greater handling of peak and off-peak loads. The smaller boiler offers a capacity of 1.2 million BTU/hr and the larger about 2.2 million BTU/hr. Although these systems can burn wood chips, this installation is set up to burn wood pellets, with a 20-ton pellet silo on site. 

In the coldest part of the year, 20 ons of wood pellets would provide about 10 or so days of heating for this customer. The pellets are being supplied by Great Lakes Renewable Energy of Hayward, Wisconsin and estimates suggest that these pellets will offer a 50% cost savings over propane per million BTU. ABE Systems of Duluth was the prime contractor on the install and may provide similar support for additional installations being considered in this region.

This project tells a great story about the ability of biomass and wood pellet fuels to allow regional economies to capture as much energy spending within their local communities as possible. Instead of paying twice as much for propane and seeing almost all of those dollars flow immediately out of the region, Wolf Ridge will spend less for fuel harvested and produced in northern Wisconsin, they will feed that fuel into boilers manufactured in Superior, and the boilers were installed and will be serviced by Minnesota companies. All of this leads to new economic activity and jobs in our region.

After nearly eight years as President & CEO, Rob West has announced his intention to resign from APEX in mid-2012 to pursue new opportunities.  West informed the APEX Executive Committee of his decision in July of 2011, in order to allow for a full year of succession planning and executive recruitment.

On Thursday, November 3, 2011, at a regular meeting of the APEX Board of Directors, West and APEX Board Chair Dr. Tom Patnoe provided members with an update on the management succession plan the APEX Executive Committee has developed in preparation for West's departure. Although none are pleased to be saying goodbye to APEX's founding executive after nearly a decade of successful leadership, APEX members were quick to offer their feedback and support for the executive search process, which will be led by KeyStone Search out of Minneapolis.

Rebecca Driscoll, Principal with KeyStone Search, was on hand to provide an overview of the executive search process and to answer any questions members had about the methodology, the types of candidates being sought, and the basic philosophies KeyStone pursues in meeting the needs of their client organizations. At the heart of KeyStone's approach lies a proprietary process to understand, identify and create a common language to describe the client organization's culture and core values. 

Rather than relying on their "gut feel" to understand APEX's unique culture, KeyStone focuses on 14 components which must all be executed with excellence and in true partnership with the client organization, before the "right" candidate can be secured. Interviews with APEX members, economic development partners, staff, and other relevant stakeholders were held during the final weeks of 2011, as KeyStone works to assess the culture and core values this dynamic organization upholds.

APEX members raised various questions, including several regarding the emphasis placed on candidates with local ties to the region APEX serves.  Although Driscoll acknowledged the importance of place and the need for APEX's next CEO to understand the unique values and characteristics of northeast Minnesota and northwest Wisconsin, she also noted that as APEX continues to grow, it is important that the next leader be measured against successful executives nationwide. She cited the executive search process KeyStone recently concluded for the Blandin Foundation in Grand Rapids as an example of similar work in the region.

Rob West joined APEX nearly 8 years ago and has successfully led the organization from a grassroots campaign led by a handful of local executives, to a regional engine for business and economic development activity in a nine-county territory of northeast Minnesota and northwest Wisconsin. With support from over 65 of the region's leading private sector employers, APEX, together with its partners, has helped to create or retain more than 2,700 jobs and has spurred on millions of dollars in new economic activity under West's leadership.

Although Rob is quick to correct anyone who suggests this is a "retirement," his departure from the organization is indeed pending and the new chief executive is expected to be in place sometime around June of 2012. Over the next several months, we at APEX hope you will join us in thanking Rob for his leadership and his service to the region over the past decade.  There's no telling what will be in store for him over the next ten years, but no doubt his work will continue to benefit the region and all those who work with him. 

If you have any questions about APEX or the executive search process, or if you have a candidate you would like to recommend, please contact Rebecca Driscoll at: (612) 375-8841

Several new members have joined APEX in 2012, including Involta, an Iowa-based company which provides full service data center facilities and expertise to manage and protect mission critical computer systems and associated data. Founded in 2007, Involta was ranked #40 on the 2010 Inc 500 list of the fastest growing private companies in the United States and is recognized as a preeminent provider of data center facilities and technology services in the Central United States. APEX and its partners worked extensively with the Involta management team in 2011, as the Company moved forward with plans for a new data storage facility in the Duluth Technology Park.

Also new to APEX this year is CW Technology, a leading provider in networks, information technology, print management and phone systems in the upper Midwest. CW Technology serves a wide range of customers and clientele from all over the five-state region, including city governments, health care providers, financial institutions, regional corporations, small businesses and home users. CW Technology recently announced several new additions to its Duluth staff and anticipates a strong year in 2012.

Granite Equity Partners has also joined APEX in 2012, further strengthening the relationship between APEX and one of Minnesota's leading private investment firms. Headquartered in St. Cloud, 

Granite Equity Partners is a private investment firm founded by community-based entrepreneurs, executives, investors, and business professionals, who intend to make a positive impact on businesses in Greater Minnesota. The firm specializes in financing buyouts, recapitalizations, and growth company transactions, which include the sale or purchase of a business, generational transfers, or business expansions.

Finally, we are pleased to report that Citon Computer Corp has joined APEX this year. Citon specializes in IT innovation - from customized commercial PCs, to the design and deployment of high-end security solutions for international companies. The Company recently relocated to a new headquarters building in downtown Duluth to accommodate the growth of its three core businesses - Citon, Telcologix and Vilarri Mobile Solutions. The new facility will also house Citon's new Cloud Computing Data Center, further expanding its service offering to customers and clientele.

Like all APEX members, the companies above have a vested interest in seeing the communities of northeast Minnesota and northwest Wisconsin thrive. They have invested in APEX because of our results-driven approach to driving new investments and private sector job growth throughout the region.  If your business is interested in joining APEX, you can learn more by contacting Sandy Johnson at: (218) 740-3667 

In the meantime, please join us in welcoming Involta, CW Technology, Granite Equity Partners, and Citon Computer Corp as the newest members of APEX!

On December 16, 2012, Joe Broking, President & CEO of Itasca Economic Development Corporation (IEDC), met with Rob West, President & CEO of APEX to discuss the results of the two organizations’ collaborative efforts over the past two years and to renew the contract which defines the agreement. Under the terms of this arrangement, APEX provides a fulltime staff person to serve as a member of the IEDC team in Grand Rapids, with an objective of driving new economic activity and job growth in and around Itasca County.

The contract with APEX, initiated in February, 2010, came on the heels of the IEDC’s decision to purchase the former Ainsworth oriented strand board manufacturing facility in Grand Rapids and has provided a necessary level of support as IEDC completed a period of management transition and worked to redevelop the former board plant for future use. As such, much of the team’s work over the past two years has been focused on redeveloping the site as the Itasca Eco Industrial Park (IEIP), a premiere location for world-class manufacturing operations in the heart of North America.

In marketing this property to new and expanding businesses, the APEX/IEDC team sought to attract companies which would leverage the region’s extensive timber resources, so as to regain not just the production jobs lost through the closure of the Ainsworth operation, but also the logging and supplier jobs associated with the timber demand of the former OSB mill.

Given the sustained downturn in the nation’s housing market and flat growth reported in the region’s paper/pulp mills, the team quickly set its sights on the advanced biofuels, biochemical and biopharmaceutical industries, as among the few areas of notable growth in the nation’s forest products sector. An extensive marketing plan was developed to penetrate these industries and today, the team is pleased to report that a memo of understanding has been executed with one of the world’s leading advanced biofuels producers. Formal agreements are expected to be secured sometime in 2012.

Today, as the APEX/IEDC team looks to renew its contract for the next two years, the 2012-2013 marketing plan has been expanded to focus on a number of other opportunities in and around Itasca County, beyond the work which continues to progress at the IEIP. The APEX/IEDC team will continue its efforts to close the deal with the potential anchor tenant and to market the remaining land parcels to other synergistic businesses, but 2012 will also see the rise of new initiatives aimed at supporting the large mining-related projects in Itasca County and expanding the IT/Computer Sciences sector in the Grand Rapids area.

If you would like to learn more about APEX’s work in Itasca County and across Minnesota’s Iron Range communities, please contact Jeff Borling at: (218) 326-9411, ext. 23

On December 20th, 2011, APEX Members gathered to learn more about the opportunity of hiring from within the Duluth at Work program. With the objective of expanding employer partnerships, the program featured a point of view by Mayor Ness, insights about our future economy from Drew Digby of DEED, two employee/participant testimonials and one employer testimonial. The event was a great success and was well attended by human resources professionals from key employers in the area. As a result of this event, the Duluth At Work program has already yielded five new employer partner relationships, with additional follow-up scheduled for the next few weeks to bring even more connections into the portfolio.

Since 2008, Duluth at Work has focused efforts on two target groups - job seekers and small business owners. A snapshot of the program’s success is as follows.

 
Workforce Development / Job Seekers: 
    • 255 participants 
    • 245 (96%) completed work-related trainings 
    • 192 (75%) successfully secured and maintained long term employment 
    • Results: Increasing incomes, building financial assets, homeownership, higher

      education, reduction in public benefits, career laddering and promotion

Small Businesses and Entrepreneurs: 
    • 59 business owner and entrepreneurial participants 
    • 57 completed 9 week trainings, in peer groups and/or received targeted technical

      assistance to more fully develop their business fundamentals and maintain a

      competitive edge in our changing economy 
    • Results: Increasing revenues, new jobs created, storefront renovation loans,

      leverage of new and more diverse funding, expansion into new markets or product

      lines
 
Duluth at Work is a workforce development/poverty reduction model co-facilitated by Duluth LISC and the City of Duluth. To learn more, please contact Emily Larson at: (218) 355-8070

On January 31, 2012, APEX is pleased to announce that Dr. Eric W. Kaler, President of the University of Minnesota, will be featured as the keynote speaker at the 2012 Annual Meeting, beginning at 3:00 p.m. at the Kitchi Gammi Club in Duluth.  At this invite-only event, APEX members will review the activities and outcomes of 2011, while looking ahead to another successful year in 2012. 

After the regular business portion of the meeting, Dr. Kaler will present the APEX Board of Directors and membership with information regarding his plans for the University system, including the role he sees for more rural campuses like the University of Minnesota-Duluth. With APEX members representing an effective cross-section of the region's business community, questions are sure to arise on the issues of workforce development, investments in the Arrowhead Region, and the potential for enhanced interaction between the University system and the local communities it serves. 

Prior to assuming the presidency at the University of Minnesota on July 1, 2011, Dr. Kaler served as provost and senior vice president for academic affairs and vice president for Brookhaven National Laboratory affairs at Stony Brook University in Stony Brook, New York. Kaler received his undergraduate degree from the California Institute of Technology in 1978 and his Ph.D. in chemical engineering from the University of Minnesota in 1982.

Kaler has received many awards and recognitions for his research, including election to the National Academy of Engineering in 2010. President Kaler and his wife, Karen, have two adult sons, Charlie and Sam. In addition to traveling with his family, Dr. Kaler loves to read, watch baseball and play with his dogs, Mo and Lida. 

Please join us in welcoming Dr. Kaler as the keynote speaker at the 2012 APEX Annual Meeting.  We look forward to visiting with you on the 31st and thank you for your ongoing support. To learn more about the APEX Annual Meeting, please contact Sandy Johnson at: (218) 740-3667